RSVR - Earnings call transcript Q2 2025

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Operator

Greetings, and welcome to the Reservoir Media Q2 Fiscal Year ' 25 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jackie Marcus, Investor Relations. Thank you.

You may begin.

Jacqueline Marcus

Thank you, operator. thank participating and conference today's everyone, call. morning, you in for earnings Good a results earlier release quarter Media press Reservoir issued with XXXX September of ended for XX, morning. XXXX this fiscal second its

you website Officer; not Khosrowshahi, did Founder are Financial Investor of press from a If and me Chief may of on Officer. you it our receive access section Golnar Executive Jim investors.reservoir-media.com. With our Heindlmeyer, and copy earnings Chief release, at Relations call the today's

is call and this reminder, simultaneously Investor webcast section recorded a As website. be will being archived Relations and the on of our

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in Our faith, basis them. expectations, good a and we are and reasonable projections there is for beliefs, expressed believe

be result for differ our and actual can the that there on these release factors of applicable and as our extent required as today, no and and beliefs, this filings that our a we and to achieved. expectations, call future the discussion. undertake described make risks, statements specific to projections the our our events, information press could expectations, other are information Any or we beliefs, to materially obligation Commission Exchange law. be results However, on press result earnings or today's from refer in Securities forward-looking by update to or release cause except statements of in projections new earnings that will no our more with assurance uncertainties, and Please

do press of to are Reconciliations accounting we call business conform with to included the release. I now believe measures understand GAAP over that results we turn these to investors addition investors measures we would to call our to if this earnings U.S. or useful financial trends. certain will plan performance nearest during presented better financial In help measures to to comparable our believe non-GAAP if like they are or generally Golnar. present they GAAP financial not to accordance in the accepted in principles,

Golnar Khosrowshahi

Jackie. everyone, us period, joining you, year-ago up million, today you posted Good fiscal discuss up quarter the multiple and of thank X% to results XX% headline and we XXXX. for compared investments our adjusted quarter Thank expand morning, In to $XX.X second the for to marked period. the revenue our to year by year-ago of roster, $XX.X of compared million, EBITDA a

by catalog current founded of Canada's NBC's our singer September, called to a works k.d. highest margin exciting Tony deal on domestically the driven achieved halls her of financial on music the of also Order superstar k.d. for late Row this years publishes results storied catalog now NBC's been her was Snoop-owned decades. has label, signed were contributions eventful growth into Death Music record ago including several musicians. have more. time deals Records. icon, entire as late milestones, generations over Publishing his results and Snoop's Canada, inspiring cost young financial summer Reservoir position fame we Snoop hits who Our in business and an judge as and addition to in Dogg the a The In past Paris defined popular strength by overall discipline Voice, good announcing and and quarter, supporting will Jim discuss our profitability. Award-winning an in music on important with in Bennett. ushering is Snoop detail. This off and talent the transitioning and our Reservoir our greater expansion featured Snoop. Grammy of best is his with cultural of Records, XX releases Snoop, also now the and and and future Juno be by Row Dr. Team Olympics, Death home with inducted label to industry rap to lang Dray coming for Reservoir of awarded multiple the was She generation singer-songwriter, civilian for songwriter. a and the new honor, With into culture way, commentator

with reputation also as Yard. Aerosmith of others, XX years. of to the quality publishing these rights our caliber Less our reinforces of of world's partner and Trick, producer, of among The Douglas, composer, whose the portfolio, and recently Elvis rights acquisition producer celebrated to announced are diversifying our Conversation, Presley's which songwriter Little talents. Further late catalog the Clean musical Back and greatest the of the songs Strange, acquired the the addition choice for A We highest record Own the some Jack and Billy includes Up legends of Your Memories, we roster past Cheap rock of works

creations evidenced Kes debuted and with a and top top includes in-demand and guidance at country us albums. Outside signed the signed increasing Lambert which investment Kes developed Diplo, trends craft the view listenership three in hit As producer, Miranda of and deal his X Reservoir's past IPs Tiesto, of for September, of has Reservoir trend Heidelman Timberland, others. billion to by Wilson's under worked his Stop collaboration, Travis Decious, works, with deal songwriter, on a over an publishing family. songwriter, future co-writes publishing at Kamara. music, the recently the XXX among on the we Whirlwind, on country XX songwriters up Billboard Travis' Lainey country producer Jon been and of charts, driver and Black cuts important TikTok, the country XX heart with million the views. In organic and dance a moving with with Workin') over writer album, Skrillex, on #X platform has which of welcomed Austin by our viral on the the crossover We producers was number hits Dasha (Boots music and line in growth. generating

genres We Seconds also multi-instrumentalist, Lavigne, Jonas announced rock signing co-writes to Choppa. of like NLE songwriter and Summer, Ben's X from span artists Stanko. producer pop's Avril the Blue, dance's of and to rap's Ben

proud assets and years. the confident icons are talent continue call bolstering our home will coming high-quality and our rising growth are the their who We Reservoir of organic in

placements. strategy These and Our of for and evergreen component long-term uniquely legendary value poised in songs growth remains investing of enhancement a critical sync catalogs strategy. our are

the weekend. For Plus ad Tim example, use campaign in with Burton's an sequel, Harry Boat and Spotify used was for known is Beetlejuice. following many increase film's which Banana featured trailers a song, the CarMax, of XXX% the original film, film's by Day-O, Belafonte's song in And Beetlejuice. the generated opening streams Beetlejuice in its the Day-O

includes holiday-specific Monster fairly cyclical Our as iconic and catalog the success, tracks enjoy such Mash. predictable Bobby Pickett that also criptickers ], [ and

Reservoir catalog reliable we user-generated to tripling the each using increase steady Halloween lends this The XXX boasts itself cuts. song These have brought YouTube views. since October, has the streams latter and track to of the longevity our content, a as and well, we to notably classic classic seen song see generations, addition In value creations both of transcend its proposition revenue XXXX. on records billion and value the enhancement ongoing demonstrating The XX over with TikTok. million

XXXX Billboard's Our to according hit, fastest the dubbed for Carpenter's platform's Jones, a also Spotify of Steph to of Hot talent. market to Espresso, was most testament XX our Reservoir's co-written ongoing chart-climbing publishers ability quarterly XXXX. continues appearance identify new quarter recently strength by are second the share and in contributed The XXX portfolio the up These success enter Billions the to to to roster evaluation Sabrina the also release the rack streamed and for the the top hit-making Club. achievements song with on successes, accolades third song's

in we As the transactions to with continues multiples. forward at over remain of entry our attractive $X second half under fiscal consideration to strong look XXXX, pipeline billion

performance subscribers is a paying saturation such North in the And Jim markets acknowledging and geographies compared of data. the the a puts portfolio genres, Our a is long greater is us team for it organic not that the metric reaching published financial and East is as potential asset proven in proves that Jim? in important the another listenership point. like only eras, our the to trending long-term identifying opportunities. With our a rapidly over call in has both our Notably, that, also attracting Having both I'd recently yet emerging Africa. near and This invaluable RIAA growth of the strength detail. critical in talent, term. to top but data of spans continued success to investment quarter number an that second for to ROI discuss U.S. position our and to Middle methodology turn to and early

Jim Heindlmeyer

you, Thank everyone. and good Golnar, morning,

decrease the offset Music X% gross offset by X% growth, and of our raising our on acquisitions. was previous due impressive expanding compared in X% De of second X% release taking cost fiscal range. prior-year X% decreased expand revenue increase strong amortization talent was Our expenses. year to to first when and are including in quarter of in revenue, confidence La to formats basis profitability in the quarter, catalog the led roster derived a the depreciation on physical XX% built expectations on in partially to given partially above and for ability a we we was fiscal decrease This for the quarter and higher XXXX while administration Reservoir quarter increase in and an increase a by by and results flows Music which from a giving expenses, costs attributable a remain on X% year. Total a us boast our Publishing us revenue of Recorded financial last million, organic a disciplined X% represents increase revenue, digital cash and costs strength that also margins The in Soul's second revenues. Revenue XX% year-over-year $XX.X guidance largely improvement a

$X write-off a from metrics improved of while the decrease from revenue XX% of quarter, adjusted year. expense Turning to performance in benefited $XX.X of fees the OIBDA $XXX,XXX the XXXX. was the quarter, to recoupable of $XX.X increase non-recurrence and for EBITDA in and OIBDA year-over-year, compared XX%, an to operating million million was from prior million, both legal the up fiscal The in QX was margins. the increase gross second Interest prior-year growth benefited for our quarter.

interest lower As expense, on a a dispute. Net for XXXX. the second a of the the while of to non-recurrence fees quarter fair write-off the during royalty QX the being of compared connection legal decrease on swaps by onetime second approximately value income interest benefit per in prior of compared was gross were an to income gain the quarter of the fiscal included the of period, recoupable the period. a was $XXX,XXX fiscal reminder, due fair Earnings to tax to $XXX,XXX settlement charge the net year-ago quarter from loss incurred the our quarter breakeven in with period, offset of in in The margin, a share the of XXXX value year-ago for in and expense $X.XX quarter. in income improved current swaps compared

period Our the in Music of Synchronization was quarter. the by which the weighted timing catalogs a and broadcast chart-topping into services growth performance revenue result at the were XX.X These from to benefited the average Recorded last due a in slightly million factors revenue slightly by in O'Connor our X% of a physical down in music and of related offset De quarter increases also year, invested revenue acquisitions primarily for timing to following physical which by mechanical was because increase catalog, million. Diving quarter the to a partially and revenue. prior-year decrease The globally. existing during July. was is our had year-ago area contributed driven in an offset death of from the quarter. diluted to of releases million boosted La increase share and mainly revenue prior direct in Digital of quarter versus to featuring revenue decrease as lower have digital the in catalog. In revenue segment, streaming multiple the the release rights in revenue revenue, our at XX% outstanding Publishing the count price revenue $XX.X revenue and multiple neighboring prior-year a deals more digital Sinead to had revenue where revenue we Soul albums and segment spike the successful Music streaming from an due compared we also was $XX.X of decline licenses. review in

sheet. balance our to Turning

of million, was which cash cash prior of of We ended revolver. consisting of $XXX.X liquidity available we $XXX.X improvement the $XXX.X our thus, $XXX.X of of deferred $XXX.X million compared hand an guidance with by million to and XXXX, $XX.X was maintained to million of was year. range. XX, XX, on activities net had debt. costs. March As net quarter net of debt September million, financing of operating provided million to of as million, We $XX.X our total of which $X debt And $X.X the That million XXXX. Relating total under million compares

midpoint X% almost now the are the We guidance $XXX $XX EBITDA Similarly, $XX which our the million revenue million million implies almost adjusted be narrowing to growth million, million to year now we to our raising are prior of $XXX increasing at signals million fiscal $XX at midpoint XXXX. of to range of of the to X% guidance $XX reflect which range. million, of to versus and range over $XXX $XXX growth million

continue year, provide half refinements when prudent our will for to our to of we'll to it's guidance monitor and We second the forecast do any so. the

excellence, Following includes strong for successful consistent of our and we our of operating guidance controls focused continued flows XXXX. we and value enable will facilitating financial first our which year to that the a cash half, us talent growth achieve strategy believe fiscal on maintaining acquisition, updated creation, cost remain

line for the open now will We questions.

Operator

The Instructions] first Griffin is Boss from B. Riley [Operator Securities. question from

Griffin Boss

on off start I'll Publishing.

fee you well believe, So as public. cited of That's a non-recurrence since general as high, were record-high line, you've top the margins, the legal improvement margins. record and I just in off gone least at a also

curious Is want to last is bit. the or there mix I improvement Just that about noted function So sustainable, a the also margin on of the that that focus Sync looking you and forward. it strong outlook revenue?

Jim Heindlmeyer

Yes. Hi, Griffin.

we It's types to slight share and But the slightly of that to that quarter-to-quarter. that that the writer the the On of based close impacted and are really positively. mix we've on types by from where of -- come revenue are margins revenue we're and in that we vary the from have those the margins, the mix on deals revenue, going downs deals extent closed. we've also deals ups maintaining that some impact see XXX% acquired the It's can quarter-to-quarter. based some we'll

Griffin Boss

shifting Makes Great. the then And Okay. sense. to pipeline outlook.

see the months, which you great fiscal Do how deals X You completed over months? the past the of several that of obviously through to the deals year? discussed see. publishing sustaining is pipeline X is Or you looking strong cadence past remainder the after the

Golnar Khosrowshahi

looking very we morning, the through the the Good looks is and more over far be rest we where given into continues now enhancement say value to comprised Griffin. our for as year, I of plans visibility and attractive are with very return we year. good that what are like pipeline have than that fiscal would halfway as opportunities strong, of the investments potential satisfactory at potential. It

the of as pipeline year that what goes. about rest holds So excited the we're fiscal far very as

Griffin Boss

are trending you've historical materially up past north down the either specifically in average weighted referenced purchase from the of the or slightly And acquisition, multiple direction in then Okay. catalog $X.XX? multiples on of

Golnar Khosrowshahi

recognized, from more so the we're multiples. thus been to We've I warranting these that look opportunities trading it's we're to at of those but -- continue think I obviously at. on execute mostly long-term a able And what and our I value think able to we've number looking at market better upside that. are able to we're transactions at assets always looking still of think multiples, is and substantial based at multiples. execute information of off see create opportunities I we where benefited And is kinds where high-teen

just what that's based we seeing. are So on

Operator

Baldry from Capital. next is question from The ROTH Richard

Richard Baldry

Snoop some factors Can of you to end the deals that I did like in of or the talk of about win people k.d. lot a you larger competitors. the think with highly recognizable of they'd lang? some sort assume up headline quarter

you you in do what is And of repeatable differentiated how sort So think that? those?

Golnar Khosrowshahi

significantly person-to-person high-quality And we to that. to and of invest high-touch here where do there get be our very we been to have focused attract we believe that be more talent. the so we really area we team-building, to we on parts we in roster. are building the and think continue will as talent team, those people other that's and that -- value is extraordinarily seeing business is continue to see especially the continues such to And able It creative will have service join high-quality the years more focus in a creative because we creative But an always as our we I been essentially and in of and has relationships. the that I automated. expanding for team value as have able now be have team think top-tier the

Richard Baldry

of And talk how sort it different deals here. about of international different positives understand you bit Do are how about markets people you're to Sort you the talking bit given like of is in have some there? a opportunities, can the those than feel you sourcing a seems working? little

that any overall from and how into just process So maybe it view differs domestic?

Golnar Khosrowshahi

calendar proxy. familiar spend really it's the we I language, who very We go around relationship-driven as which probably into Abu local, the Dubai, I in that really a the are And based from are we I types are do believe I we again, with been not a The that familiar particularly music say, who here, who source being, Morocco. with weeks on Egypt, are of develop -- markets have ground mechanism, sourcing a And us. much a X have speak and different being there. is within region And every constant of in a region, deal during what the there the team or for to region. year those the have the well. Dhabi, you lot ground ground of on happens that's Sure. deals business and and how the they dissimilar is in market, too non-emerging suppose, which that's any for don't key from years, the nurture on continuing those And why markets. relationships, the do by point would can nuances --

Richard Baldry

Great.

Just of for maybe. mechanical question sort Jim a

the swaps You reason. sort talk of about the charge

across was forward? How larger think play out it to of sheet balance think so going to. what just does about we're little a sort P&L that we I than know used

Jim Heindlmeyer

Sure.

we some as attractive XX. were very swaps, September that mark-to-market So we obviously had our swaps and expiring of

So the September you at those they approach value of fair coming to XX X maturity. saw as swaps down their

Going forward, we to million hedged. continue have $XXX

that would what You I little interest that batch happens maturity in the But on can detail -- in we rates. have September that filings. of volatility reached less again, fair X XX swaps, value now swaps But depending expect rates. such favorable see of expired that our a those with the of first those with

Richard Baldry

have last for you? of some ahead the do impact think that maybe you pricing is There has me. your of one And increased already streaming much versus revenue sort world. been hit How across

Jim Heindlmeyer

us quickly. what's X gets we're Those are When later, come evaluating go the price in. But month those pretty in months prices increases that. of account us to part to factor process, streaming cash pipeline. our always -- up, And increases we accrual as after a price that we the services

quick. So it's pretty

the are that of we fairly making of just the markets it. have us to Some because it's delayed visibility to international way process be cash quick. that and to going But more of the its

Richard Baldry

last in. Maybe one squeeze I'll one

and that Sort the stair-step higher lenders, of Your high. accordion look a about that of When a tandem basis? you get substantial your with availabilities of adjusted of access steady-state you your do sort step-up wait intermittently? that EBITDA curious sort liquidity in new you'll step-up. you at just pretty Do to sort on with that set EBITDA

Jim Heindlmeyer

ratio a have revolver. leverage we revolver. do facility. in We a remember, set Well, It's have not our a

to have need as full we revolver So access we it. our

lenders. supportive incredibly have We

were our now, expand we access which extent that our that's EBITDA happy to them very facility, go to that But EBITDA we our the to. a with need be of ability full to and really at to revolver, that. any the right our point, would needed extent to It's we there this that plans we our and to we're independent access to don't So have obviously to able expanding revolver. not margins. But expanding impacting have

Operator

Fuhrman [Operator Instructions] question The Alex Craig-Hallum. from next is from

Alex Fuhrman

of I think us the part up quarter healthy had sort source was licenses. how much is in video revenues sense Can that give the more been speaking, Sync of Sync on Sync onetime demand seeing been said the excluding a the the games reason in were or of you kind so that And where generally mentioned the timing strength you side? business of of think a you entertainment been there. have just item? advertising? past, has Has I more you've it of little

you what in curious Just seeing area. that are

Jim Heindlmeyer

Yes.

us. that we business, with we have of the focuses team that to but have is respect don't And Sync on bit on the have impact an this an I control the up-and-down sense of us strong to revenue. don't great control. rate. We opportunities this to some want address opportunities always the come downplay of and the to in execute on quarter, But advantage incredible of those seen the these that's run the really referenced They and have a licenses. robust make us. a over driving taking job of And they a come do to as we demand, Golnar that. and that terms in Just We us. Maybe facilitating great demand to over it necessarily I'll to opportunities of in they Opportunities had turn them performance Sync. because not do we timing timing indicative came frequently not to have most we quarter. that

Golnar Khosrowshahi

with the think TV licenses If that pre-strike continues goes, as up feedback as on is this -- quarter to and see at of we're continue few quarters, that us. performance but were and issued, licenses levels for be is goes. there to as sprinkled and there. back which the last that improve, saw theme much has source is there's always still by driving been a I to syncs driven to the significant ones far advertising continuing same that Trailers demand in and in that licensing pretty trailers. the not be high-placement there that a I advertising the our getting, look the it's that film film We As far that really we think and I hangover the getting do

Operator

There Khosrowshahi, over further would this floor to Chief turn Golnar closing are no questions time. I to at Officer, like for Executive the back comments.

Golnar Khosrowshahi

Thank I you, look operator, and lie thank you. you, to morning. that progress about next opportunities for and and you everybody, sharing for The joining the ahead us early team Reservoir, excited year. Thank forward incredibly this are we with our

Operator

today's concludes This teleconference.

your lines your for at disconnect participation. you time. may this You Thank

Reservoir Media (RSVR) 30 Oct 242025 Q2 Earnings call transcript